Overview
- House Republicans advanced key components of a $5 trillion tax cut and $1.5 trillion spending reduction package after marathon committee sessions.
- The package includes $880 billion in Medicaid cuts, introducing work requirements, cost-sharing fees, and state penalties, which could result in over 10 million losing coverage by 2034, according to CBO estimates.
- Moderate and hardline GOP members remain divided, with disputes over Medicaid work requirements starting in 2029 and the state and local tax (SALT) deduction cap unresolved.
- Senate Republicans, including Josh Hawley and Ron Johnson, have raised concerns about Medicaid benefit cuts and insufficient deficit reduction, with warnings of potential vetoes.
- Democrats and advocates have strongly opposed the cuts, citing risks to health care and food assistance for millions, while protests and disruptions marked committee debates.